The Bank of New York Mellon Corporation (NYSE: BK) confirmed that it has joined forces with blockchain-data platform Chainalysis to chase and analyze cryptocurrency products. BNY Mellon has earned recognition as the world’s largest custodian bank, currently managing $46.7 trillion in assets.
BNY Mellon’s debut into cryptocurrency in February of last year, when it revealed plans to act as an asset manager for its clients, holding, transferring, and issuing Bitcoin and other cryptocurrencies. This is part of a bigger trend of conventional financial embracing the idea of cryptocurrencies. Moreover, famous names like Morgan Stanley, Citibank, and JPMorgan now handling and trading in bitcoin.
As per the partnership, BNY Mellon will employ Chainalysis’ risk management software to track, analyze, and use data linked to cryptocurrency assets. Some of Chainalysis’ attributes will be beneficial to the custodial bank. Know-Your-Transaction (KYT), Reactor, and Kryptos are three of these features. KYT will be one of BNY Mellon’s most advantageous features because it will assess deals based on their risk level.
Furthermore, the software will benefit Mellon because if KYT software detects crypto being moved to a sanctioned wallet address, it can halt the transaction before it takes place. Kryptos collects and converts complex data into useful information for organizations, while Reactor gives businesses more analytical capacity on the blockchain.